EAU CLAIRE, Wis., Jan. 26, 2018 (GLOBE NEWSWIRE) -- Citizens Community Bancorp, Inc. (the "Company") (Nasdaq:CZWI), the parent company of Citizens Community Federal N.A. (the “Bank”), today reported GAAP earnings increased to $1.34 million, or $0.23 per diluted share in Q1 fiscal 2018, compared to $940,000, or $0.18 per share one year earlier and a loss of $458,000, or ($0.08) one quarter earlier. The Q1 fiscal 2018 operations reflect a full quarter earnings impact from the Wells Financial acquisition, the decrease in tax rate due to Tax Cuts and Jobs Act ("the Tax Act") of 2017, offset by higher professional costs, severance costs, and a $275,000, or $0.05 per share additional one-time tax expense associated with the recently passed Tax Act discussed above. The quarter reflected continued growth in commercial/ag loans while indirect lending balances have declined.

The Board of Directors increased the annual cash dividend 25% to $0.20 per share over the annual dividend paid to holders of common stock in 2017. The dividend will be payable on March 8, 2018 to shareholders of record on February 9, 2018.

Core earnings is a non-GAAP measure that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities. For a detailed reconciliation of GAAP to non-GAAP results, see the accompanying financial table "Reconciliation of GAAP Earnings (loss) and Core Earnings (non-GAAP)".

“We continue to make progress in transforming our balance sheet composition, which is translating into stronger core earnings. Our commercial loan growth reflects our commercial bankers' successful calling efforts and the addition of new commercial and ag bankers to our team. The efforts to improve our funding sources and costs by increasing transaction oriented, core deposits continues,” said Stephen Bianchi, President and Chief Executive Officer. “Our commitment to expense management is ongoing as we use technology to automate and manage workflows, specifically in commercial banking.”

Q1 Fiscal 2018 Financial Highlights: (at or for the periods ended December 31, 2017, compared to September 30, 2017 and /or December 31, 2016)

GAAP net income reflected earnings of $1.34 million in Q1 fiscal 2018, compared to $940,000 from a year ago, and a loss of $458,000 in Q4 fiscal 2017.

Net interest income increased 35.5% to $7.53 million in Q1 fiscal 2018, from $5.56 million in Q1 fiscal 2017 and 22.0% from $6.17 million one quarter earlier, largely due to the full quarter impact of the Wells acquisition.

Net interest margin (NIM) expanded to 3.42% for the current quarter, compared to 3.36% for Q1 fiscal 2017 and 3.29% for Q4 fiscal 2017, largely due to the full quarter impact of the Wells acquisition.

Loan loss provision increased to $100,000 in Q1 fiscal 2018 compared to no provisions one year earlier and decreased from $319,000 the previous quarter.

Total non-interest income increased 56% to $1.94 million in Q1 fiscal 2018, compared to $1.24 million in Q1 fiscal 2017 and 39% from $1.39 million one quarter earlier. Growth in non-interest income is being driven by the impact of the Wells acquisition which has resulted in higher deposit charges and increased loan fees and service charges due to gain on sale of residential loan income.

Total non-interest expense increased to $7.14 million for Q1 fiscal 2018 from $5.39 million for Q1 fiscal 2017 and declined from $7.91 million in Q4 fiscal 2017, largely due to lower merger and branch closure expenses, partially offset by a full quarter's expenses related to the Wells acquisition.

Net loans were $725.1 million at December 31, 2017, compared to $543.0 million at December 31, 2016, reflecting the Wells acquisition and $727.1 million at September 30, 2017.

Total deposits were $741.1 million at December 31, 2017, compared to $535.1 million at December 31, 2016 and $742.5 million at September 30, 2017.

The allowance for loan and lease losses was 0.80% of total loans at December 31, 2017, compared to 1.08% one year earlier and 0.81% the preceding quarter. The lower ratio for Q1 fiscal 2018 relative to one year earlier was a result of the larger balance of loans related to the acquisition of Wells Financial that were recorded at fair values and therefore without provisions for loan losses.

Nonperforming assets were $14.2 million, or 1.50% of total assets at December 31, 2017, compared to $7.4 million, or 1.08% of total assets at December 31, 2016, and $14.1 million, or 1.49% of total assets at September 30, 2017. In the current quarter, the impact of paydowns on non-performing loans was offset by the transfer of an owned, closed branch acquired in the Wells acquisition.

Total assets were $943.0 million at December 31, 2017, compared to $686.4 million at December 31, 2016, and $940.7 million at September 30, 2017. The increase in total assets from a year ago was primarily due to the acquisition of Wells Financial.

Loan balances decreased slightly from the immediate prior quarter due to the pay down of indirect loans and one to four family real estate loans. Meanwhile, commercial real estate loans increased through originations outpacing loan pay downs. At December 31, 2017, commercial and agricultural real estate loans totaled 39.4% of the total loan portfolio versus 37.2% the prior quarter and 27.6% one year earlier. One to four family residential and home equity real estate loans represented 32.4% of the total loan portfolio versus 33.6% the prior quarter, while consumer related non-real estate loans totaled 17.0% of the total loan portfolio versus 18.5% the prior quarter.

The allowance for loan and lease losses was largely unchanged at December 31, 2017 and totaled $5.9 million, representing 0.80% of total loans, compared to $5.9 million and 0.81% of total loans at September 30, 2017. Net charged off loans totaled $183,000 for the first quarter ended December 31, 2017 compared to $151,000 for the quarter ended December 31, 2016.

Nonperforming assets were $14.2 million, or 1.50% of total assets at December 31, 2017 compared to $7.4 million, or 1.08% of total assets at December 31, 2016, and $14.1 million, or 1.49% of total assets at September 30, 2017. Included in nonperforming assets are approximately $5.1 million of REO properties acquired in the Wells Financial acquisition. Additionally, the level of other real estate owned increased to $7.0 million at December 31, 2017 from $6.0 million one quarter earlier due to the transfer of an owned, closed branch acquired in the Wells acquisition.

Deposits totaled $741.1 million at December 31, 2017, compared to $535.1 million at December 31, 2016, and $742.5 million at September 30, 2017. Noninterest-bearing deposits increased to $78.7 million at December 31, 2017, compared to $75.3 million at September 30, 2017, and $47.5 million at December 31, 2016. Core deposits, excluding time deposits, increased to $452.5 million, or 61.1% of total deposits compared to $451.7 million at September 30, 2017, or 60.8% of total deposits.

Federal Home Loan Bank ("FHLB") advances totaled $94.0 million at December 31, 2017, compared to $90.0 million at September 30, 2017. Other borrowings decreased slightly to $29.9 million at December 31, 2017, compared to $30.3 million at September 30, 2017. The Bank has used borrowings and equity capital to fund acquisitions of other financial institutions, branch closings and FHLB advances to support organic loan growth.

Tangible book value per share (non-GAAP) was $9.98 at December 31, 2017, compared to $11.09 at December 31, 2016, and $9.78 at September 30, 2017.

Capital ratios for the Bank continued to remain well above regulatory requirements.

Review of Operations

Net interest income increased to $7.5 million for Q1 fiscal 2018, compared to $5.6 million for Q1 fiscal 2017 and $6.2 million on a linked quarter basis. The NIM increased to 3.42% for Q1 fiscal 2018, compared to 3.36% for the same quarter one year earlier and 3.29% for Q4 fiscal 2017. The increase in the net interest margin was supported by higher yields on loans and lower cost of funds.

Loan yields increased to 4.72% for Q1 fiscal 2018 compared to 4.61% one year earlier and 4.59% for the immediately prior quarter. Meanwhile, deposit costs declined to 0.72% for Q1 fiscal 2018 from 0.89% one year earlier and 0.77% for Q4 fiscal 2017. Costs on the FHLB and other borrowings increased to 2.33% for Q1 fiscal 2018 from 1.37% one year earlier and 2.12% for the preceding quarter. “The improved net interest margin is largely due to the full quarter impact of the Wells merger along with the result of our changing balance sheet composition which reflects more direct lending of commercial related loans and funding the loans with lower cost deposits,” said Jim Broucek, Chief Financial Officer.

For Q1 fiscal 2018, provision for loan losses totaling $100,000 was recorded, responsive to organic loan growth. Net charge offs were $183,000 for Q1 fiscal 2018, compared to $151,000 for Q1 fiscal 2017. Allowance for loan and lease losses to total loans was 0.80%, at December 31, 2017, compared to 1.08% at December 31, 2016 and 0.81%, at September 30, 2017.

Total non-interest expense was $7.1 million for Q1 fiscal 2018 compared to $5.4 million for Q1 fiscal 2017 and $7.9 million for Q4 fiscal 2017. Total non-interest expense for the first quarter includes severance expense related to an executive departure and slightly higher professional fees.

The Tax Cuts and Jobs Act was enacted December 22, 2017, reducing the corporate Federal income tax rate for the Company from 34% to 24.5% in fiscal 2018 and 21% in fiscal 2019. Additionally, the Tax Act made other changes to U.S. corporate income tax laws. GAAP requires that the impact of the provisions of the Tax Act be accounted for in the period of enactment. The Company revalued its net deferred tax assets to account for the future impact of lower corporate tax rates. For the first quarter ended December 31, 2017, the Company recorded a one-time net tax charge of $275,000 related to the revaluation of the deferred assets related to both the revaluation of timing differences and the unrealized loss on securities. This increase in income tax expense was partially offset by an approximately $135,000 reduction in income tax expense due to a lower corporate tax rate.

These financial results are preliminary until the Form 10-Q is filed in February 2018.

About the Company

Citizens Community Bancorp, Inc. (NASDAQ: “CZWI”) is the holding company of Citizens Community Federal N.A., a national bank based in Altoona, Wisconsin, serving customers in Wisconsin, Minnesota and Michigan through 21 branch locations. Its primary markets include the Chippewa Valley Region in Wisconsin, the Twin Cities and Mankato, MN, and various rural communities around these areas. The company offers traditional community banking services to businesses, Ag operators and consumers, including one-to-four family mortgages. The company’s recently completed merger with Wells Federal Bank of Wells, MN expands its market share in Mankato and southern Minnesota and added seven branch locations along with expanded services through Wells Insurance Agency.

Cautionary Statement Regarding Forward-Looking Statements

Certain statements contained in this release are considered “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements may be identified by the use of forward-looking words or phrases such as “anticipate,” “believe,” “could,” “expect,” “intend,” “may,” “planned,” “potential,” “should,” “will,” “would” or the negative of those terms or other words of similar meaning. Such forward-looking statements in this release are inherently subject to many uncertainties arising in the operations and business environment of Citizens Community Federal N.A. (“CCFBank”). These uncertainties include the combined company’s ability to achieve the synergies and value creation contemplated by the transaction with Wells Financial; management’s ability to promptly and effectively integrate the businesses of the two companies; the diversion of management time on post acquisition integration issues; the effects of governmental regulation of the financial services industry; industry consolidation; technological developments and major world news events; general economic conditions, in particular, relating to consumer demand for CCFBank’s products and services; CCFBank’s ability to maintain current deposit and loan levels at current interest rates; competitive and technological developments; deteriorating credit quality, including changes in the interest rate environment reducing interest margins; prepayment speeds, loan origination and sale volumes, charge-offs and loan loss provisions; CCFBank’s ability to maintain required capital levels and adequate sources of funding and liquidity; maintaining capital requirements may limit CCFBank’s operations and potential growth; changes and trends in capital markets; competitive pressures among depository institutions; effects of critical accounting estimates and judgments; changes in accounting policies or procedures as may be required by the Financial Accounting Standards Board (FASB) or other regulatory agencies overseeing CCFBank; CCFBank’s ability to implement its cost-savings and revenue enhancement initiatives, including costs associated with its branch consolidation and new market branch growth initiatives; legislative or regulatory changes or actions or significant litigation adversely affecting CCFBank; fluctuation of the Company’s stock price; CCFBank's ability to attract and retain key personnel; CCFBank's ability to secure confidential information through the use of computer systems and telecommunications networks; and the impact of reputational risk created by these developments on such matters as business generation and retention, funding and liquidity. Shareholders, potential investors and other readers are urged to consider these factors carefully in evaluating the forward-looking statements and are cautioned not to place undue reliance on such forward-looking statements. Such uncertainties and other risks that may affect the Company’s performance are discussed further in Part I, Item 1A, “Risk Factors,” in the Company’s Form 10-K, for the year ended September 30, 2017 filed with the Securities and Exchange Commission ("SEC") on December 13, 2017 and the Company's subsequent filings with the SEC. The Company undertakes no obligation to make any revisions to the forward-looking statements contained in this news release or to update them to reflect events or circumstances occurring after the date of this release.

Non-GAAP Financial Measures

This press release contains non-GAAP financial measures, which management believes may be helpful in understanding the Company's results of operations or financial position and comparing results over different periods. Non-GAAP measures eliminate the impact of certain one-time expenses such as acquisition and branch closure costs and related data processing termination fees, legal costs, severance pay, accelerated depreciation expense and lease termination fees and the net impact of the Tax Cuts and Jobs Act of 2017. Merger related charges represent expenses to either satisfy contractual obligations of acquired entities without any useful benefit to the Company or to convert and consolidate customer records onto the Company platforms. These costs are unique to each transaction based on the contracts in existence at the merger date. Where non-GAAP financial measures are used, the comparable GAAP financial measure, as well as the reconciliation to the comparable GAAP financial measure, can be found in this press release. These disclosures should not be viewed as a substitute for operating results determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other banks and financial institutions.

Note: Certain items previously reported were reclassified for consistency with the current presentation.

Reconciliation of GAAP Earnings (loss) and Core Earnings (non-GAAP):

Three Months Ended

December 31,2017

September 30,2017

December 31,2016

(Dollars in Thousands, except share data)

GAAP earnings (loss) before income taxes

$

2,223

$

(665

)

$

1,407

Merger related costs (1)

94

1,517

—

Branch closure costs (2)

7

255

633

Core earnings before income taxes (3)

2,324

1,107

2,040

Provision for income tax on core earnings (4)

569

376

694

Core earnings after income taxes (3)

$

1,755

$

731

$

1,346

GAAP diluted earnings (loss) per share, net of tax

$

0.23

$

(0.08

)

$

0.18

Merger related costs, net of tax

0.02

0.19

—

Branch closure costs, net of tax

—

0.03

0.07

Tax Cuts and Jobs Act of 2017 tax provision (5)

0.05

—

—

Core diluted earnings per share, net of tax

$

0.30

$

0.14

$

0.25

Average diluted shares outstanding

5,920,899

5,629,363

5,262,718

(1) Costs incurred are included as data processing, advertising, marketing and public relations, professional fees and other non-interest expense in the consolidated statement of operations.(2) Branch closure costs include severance pay recorded in compensation and benefits, accelerated depreciation expense and lease termination fees included in occupancy and other costs included in other non-interest expense in the consolidated statement of operations. In addition, other non-interest expense includes costs related to the valuation reduction of the Ridgeland branch office in the fourth quarter of fiscal 2017.(3) Core earnings is a non-GAAP measure that management believes enhances investors' ability to better understand the underlying business performance and trends related to core business activities.(4) Provision for income tax on core earnings is calculated at 24.5% for the three months ended December 31, 2017 and at 34% for all quarters in the prior fiscal year, which represents our federal statutory tax rate for each respective period presented.(5) As a result of the Tax Cuts and Jobs Act of 2017, we recorded a one-time net tax provision of $275 in December 2017, which is included in provision for income taxes expense in the consolidated statement of operations.(6) Reconciliation of tangible book value:

Tangible book value per share at end of period

December 31,2017

September 30,2017

December 31,2016

Total stockholders' equity

$

74,454

$

73,483

$

63,826

Less: Goodwill

(10,444

)

(10,444

)

(4,663

)

Less: Intangible assets

(5,287

)

(5,449

)

(829

)

Tangible common equity (non-GAAP)

$

58,723

$

57,590

$

58,334

Ending common shares outstanding

5,883,603

5,888,816

5,260,098

Tangible book value per share (non-GAAP)

$

9.98

$

9.78

$

11.09

Nonperforming Assets:

December 31, 2017 and Three Months Ended

September 30, 2017and Twelve Months Ended

December 31, 2016 and Three Months Ended

Nonperforming assets:

Nonaccrual loans

6,388

$

7,452

$

5,750

Accruing loans past due 90 days or more

739

589

894

Total nonperforming loans (“NPLs”)

7,127

8,041

6,644

Other real estate owned

6,996

5,962

655

Other collateral owned

35

55

129

Total nonperforming assets (“NPAs”)

$

14,158

$

14,058

$

7,428

Troubled Debt Restructurings (“TDRs”)

$

7,263

$

5,851

$

3,529

Nonaccrual TDRs

$

1,327

$

621

$

410

Average outstanding loan balance

$

731,957

$

653,717

$

561,672

Loans, end of period

730,918

732,995

548,904

Total assets, end of period

943,032

940,664

686,414

ALL, at beginning of period

5,942

6,068

6,068

Loans charged off:

Residential real estate

(24

)

(233

)

(43

)

Commercial/agriculture real estate

(1

)

—

—

Consumer non-real estate

(194

)

(389

)

(172

)

Commercial agriculture non-real estate

—

(9

)

—

Total loans charged off

(219

)

(631

)

(215

)

Recoveries of loans previously charged off:

Residential real estate

13

14

3

Commercial/agriculture real estate

—

—

—

Consumer non-real estate

22

171

61

Commercial agriculture non-real estate

1

1

—

Total recoveries of loans previously charged off:

36

186

64

Net loans charged off (“NCOs”)

(183

)

(445

)

(151

)

Additions to ALL via provision for loan losses charged to operations

100

319

—

ALL, at end of period

$

5,859

$

5,942

$

5,917

Ratios:

ALL to NCOs (annualized)

800.41

%

1,335.28

%

979.64

%

NCOs (annualized) to average loans

0.10

%

0.07

%

0.11

%

ALL to total loans

0.80

%

0.81

%

1.08

%

NPLs to total loans

0.98

%

1.10

%

1.21

%

NPAs to total assets

1.50

%

1.49

%

1.08

%

Nonaccrual Loans Rollforward:

Quarter Ended

December 31,2017

September 30,2017

June 30,2017

March 31,2017

December 31,2016

Balance, beginning of period

$

7,452

$

6,035

$

5,767

$

5,750

$

3,191

Additions

263

$

488

557

308

3,433

Acquired nonaccrual loans

—

1,449

—

—

—

Charge-offs

(74

)

(22

)

(12

)

(68

)

(150

)

Transfers to foreclosed and repossessed assets

(46

)

(153

)

(109

)

(14

)

(220

)

Return to accrual status

—

—

—

—

—

Payments received

(1,207

)

(345

)

(168

)

(209

)

(504

)

Other, net

—

—

—

—

—

Balance, end of period

$

6,388

$

7,452

$

6,035

$

5,767

$

5,750

Other Real Estate Owned Rollforward:

Quarter Ended

December 31,2017

September 30,2017

June 30,2017

March 31,2017

December 31,2016

Balance, beginning of period

$

5,962

$

580

$

648

$

655

$

725

Loans transferred in

57

$

175

82

—

179

Acquired OREO

—

5,343

—

—

—

Branch properties transferred in

1,444

250

—

—

—

Sales

(394

)

(353

)

(150

)

—

(249

)

Writedowns

(16

)

(33

)

—

(7

)

—

Other, net

(57

)

—

—

—

—

Balance, end of period

$

6,996

$

5,962

$

580

$

648

$

655

Troubled Debt Restructurings:

December 31, 2017

September 30, 2017

December 31, 2016

Number ofModifications

RecordedInvestment

Number ofModifications

RecordedInvestment

Number ofModifications

RecordedInvestment

Troubled debt restructurings:

Residential real estate

33

$

3,667

32

$

3,678

30

$

3,214

Commercial/Agricultural real estate

12

2,699

8

1,890

—

—

Consumer non-real estate

19

166

20

195

22

315

Commercial/Agricultural non-real estate

6

731

2

88

—

—

Total loans

70

$

7,263

62

$

5,851

52

$

3,529

Loan Composition:

December 31, 2017

September 30, 2017

December 31, 2016

Originated Loans:

Residential real estate:

One to four family

$

128,396

$

132,380

$

151,180

Purchased HELOC loans

16,968

18,071

—

Commercial/Agricultural real estate:

Commercial real estate

110,815

97,155

62,724

Agricultural real estate

11,580

10,628

4,803

Multi-family real estate

30,868

24,486

15,550

Construction and land development

12,682

12,399

12,812

Consumer non-real estate:

Originated indirect paper

79,492

85,732

111,507

Purchased indirect paper

26,210

29,555

44,006

Other Consumer

14,465

14,496

17,851

Commercial/Agricultural non-real estate:

Commercial non-real estate

39,594

35,198

20,803

Agricultural non-real estate

12,649

12,493

9,621

Total originated loans

$

483,719

$

472,593

$

450,857

Acquired Loans:

Residential real estate:

One to four family

$

92,681

$

97,183

$

24,884

Commercial/Agricultural real estate:

Commercial real estate

60,828

62,807

28,444

Agricultural real estate

53,447

57,374

24,133

Multi-family real estate

1,708

1,742

—

Construction and land development

7,156

7,309

2,710

Consumer non-real estate:

Other Consumer

4,777

6,172

604

Commercial/Agricultural non-real estate:

Commercial non-real estate

19,229

20,053

12,650

Agricultural non-real estate

11,061

11,380

4,466

Total acquired loans

$

250,887

$

264,020

$

97,891

Total Loans:

Residential real estate:

One to four family

$

221,077

$

229,563

$

176,064

Purchased HELOC loans

16,968

18,071

—

Commercial/Agricultural real estate:

Commercial real estate

171,643

159,962

91,168

Agricultural real estate

65,027

68,002

28,936

Multi-family real estate

32,576

26,228

15,550

Construction and land development

19,838

19,708

15,522

Consumer non-real estate:

Originated indirect paper

79,492

85,732

111,507

Purchased indirect paper

26,210

29,555

44,006

Other Consumer

19,242

20,668

18,455

Commercial/Agricultural non-real estate:

Commercial non-real estate

58,823

55,251

33,453

Agricultural non-real estate

23,710

23,873

14,087

Gross loans

$

734,606

$

736,613

$

548,748

Unearned net deferred fees and costs and loans in process

1,252

1,471

1,605

Unamortized discount on acquired loans

(4,940

)

(5,089

)

(1,449

)

Total loans receivable

$

730,918

$

732,995

$

548,904

Deposit Composition:

December 31,2017

September 30,2017

December 31, 2016

Non-interest bearing demand deposits

$

78,685

$

75,318

$

47,463

Interest bearing demand deposits

149,058

147,912

50,779

Savings accounts

98,941

102,756

51,826

Money market accounts

125,831

125,749

125,923

Certificate accounts

288,554

290,769

259,121

Total deposits

$

741,069

$

742,504

$

535,112

Average balances, Interest Yields and Rates:

Three months endedDecember 31, 2017

Three months endedSeptember 30, 2017

Three months endedDecember 31, 2016

AverageBalance

InterestIncome/Expense

AverageYield/Rate (1)

AverageBalance

InterestIncome/Expense

Average Yield/ Rate (1)

Average Balance

Interest Income/ Expense

Average Yield/ Rate (1)

Average interest earning assets:

Cash and cash equivalents

$

30,848

$

67

0.86

%

$

32,692

$

71

0.86

%

$

10,238

$

12

0.47

%

Loans receivable

733,203

8,721

4.72

%

621,530

7,194

4.59

%

561,519

6,530

4.61

%

Interest bearing deposits

7,714

32

1.65

%

4,571

18

1.56

%

745

3

1.60

%

Investment securities (1)

100,737

513

2.23

%

90,467

430

2.24

%

86,617

358

1.97

%

Non-marketable equity securities, at cost

7,336

79

4.27

%

5,701

57

3.97

%

5,200

45

3.43

%

Total interest earning assets

$

879,838

$

9,412

4.27

%

$

754,961

$

7,770

4.13

%

$

664,319

$

6,948

4.19

%

Average interest bearing liabilities:

Savings accounts

$

96,230

$

22

0.09

%

$

72,476

$

21

0.11

%

$

43,743

$

17

0.15

%

Demand deposits

146,838

90

0.24

%

98,416

79

0.32

%

48,989

74

0.60

%

Money market accounts

123,459

167

0.54

%

128,039

168

0.52

%

130,057

134

0.41

%

CD’s

263,429

839

1.26

%

235,076

752

1.27

%

245,646

814

1.31

%

IRA’s

34,992

84

0.95

%

31,302

75

0.95

%

29,000

80

1.09

%

Total deposits

$

664,948

$

1,202

0.72

%

$

565,309

$

1,095

0.77

%

$

497,435

$

1,119

0.89

%

FHLB advances and other borrowings

116,359

683

2.33

%

93,978

503

2.12

%

78,841

272

1.37

%

Total interest bearing liabilities

$

781,307

$

1,885

0.96

%

$

659,287

$

1,598

0.96

%

$

576,276

$

1,391

0.96

%

Net interest income

$

7,527

$

6,172

$

5,557

Interest rate spread

3.31

%

3.17

%

3.23

%

Net interest margin

3.42

%

3.29

%

3.36

%

Average interest earning assets to average interest bearing liabilities